Natural Gas Is Florida's Top Utility Source and Growing

It generates most of Florida's electricity, and its use will grow.

By Susan SalisburyCox Newspapers

Published: Friday, December 28, 2012 at 11:00 p.m.

Last Modified: Friday, December 28, 2012 at 11:00 p.m.

WEST PALM BEACH | Natural gas was used to generate 62 percent of Florida's electricity this year, and the fuel is expected to continue to dominate, the Florida Public Service Commission said in a report released last week.

Natural gas-fired generating units make up most up the state's generation fleet, as well as plant additions projected over the next decade, the report based on the 10-year site plans of the state's 11 largest electric utilities found.

(Natural gas use at Lakeland Electric nearly mirrored the state's.

Currently, about two-thirds of the city's electricity is generated by Unit 5, the utility's giant natural gas generator. In 2013, commissioners plan to consider adding natural gas to Unit 3, its coal-burning generator. It would be a $7 million project. The cost for Lakeland Electric to convert Unit 3 to a coal- and natural gas-burning unit would be about $4.5 million, while the Orlando Utilities Commission, which owns 40 percent of the unit, would pay about $2.5 million.)

In 2002 natural gas-fired plants generated just 25 percent of the state's electricity. Natural gas as a percentage of use is projected to peak this year, then slowly decline to 56 percent in 2021, due to projected increases in nuclear power, the report said.

"The site plans provide us with a road map to meet Florida's energy needs over the next 10 years and ensure future reliability," said PSC Chairman Ronald A Brise. "Increased use of natural gas in Florida reduces overall energy costs and lessens environmental impacts."

Between 2012 and 2021, the average annual growth rate for residential customers in Florida is projected at 1.26 percent.

Juno Beach-based Florida Power & Light Co. said last week that it has reduced its oil consumption by 98 percent by investing in new highly efficient power plants that use U.S.-produced natural gas as a fuel to produce electricity. In 2001, FPL used more than 40 million barrels of oil to produce power, and this year it will use fewer than 1 million barrels.

Also last week, FPL issued a request for proposals to bring a third major multibillion-dollar, 700-mile natural gas pipeline into Florida. The proposed new "Southeast Pipeline" will provide approximately 400 million cubic feet per day of natural gas capacity for FPL beginning in 2017, and more in the future.

The proposed pipeline will include the Florida Interstate Connection and Central Florida Hub, which will run from Alabama to Central Florida. The Florida Southeast Connection will run from Central Florida to Martin County, where it will connect with FPL's existing system.

Interested companies can bid on one or both segments. FPL plans to consider building the Florida Southeast Connection itself. The specific routes will be selected and proposed by companies submitting bids.

FPL has natural gas-fired plants under construction at Cape Canaveral and Riviera Beach. They are slated for completion in June 2013 and June 2014, respectively. The company also plans to begin operating a new natural gas plant at Port Everglades in Broward County in 2016.

The company will be purchasing the gas turbines for its Port Everglades plant from German multinational Siemens AG, which is also supplying the turbines for the new Riviera Beach and Cape Canaveral plants, Siemens said.

<p>WEST PALM BEACH | Natural gas was used to generate 62 percent of Florida's electricity this year, and the fuel is expected to continue to dominate, the Florida Public Service Commission said in a report released last week.</p><p>Natural gas-fired generating units make up most up the state's generation fleet, as well as plant additions projected over the next decade, the report based on the 10-year site plans of the state's 11 largest electric utilities found.</p><p>(Natural gas use at Lakeland Electric nearly mirrored the state's.</p><p>Currently, about two-thirds of the city's electricity is generated by Unit 5, the utility's giant natural gas generator. In 2013, commissioners plan to consider adding natural gas to Unit 3, its coal-burning generator. It would be a $7 million project. The cost for Lakeland Electric to convert Unit 3 to a coal- and natural gas-burning unit would be about $4.5 million, while the Orlando Utilities Commission, which owns 40 percent of the unit, would pay about $2.5 million.)</p><p>In 2002 natural gas-fired plants generated just 25 percent of the state's electricity. Natural gas as a percentage of use is projected to peak this year, then slowly decline to 56 percent in 2021, due to projected increases in nuclear power, the report said.</p><p>"The site plans provide us with a road map to meet Florida's energy needs over the next 10 years and ensure future reliability," said PSC Chairman Ronald A Brise. "Increased use of natural gas in Florida reduces overall energy costs and lessens environmental impacts."</p><p>Between 2012 and 2021, the average annual growth rate for residential customers in Florida is projected at 1.26 percent.</p><p>Juno Beach-based Florida Power & Light Co. said last week that it has reduced its oil consumption by 98 percent by investing in new highly efficient power plants that use U.S.-produced natural gas as a fuel to produce electricity. In 2001, FPL used more than 40 million barrels of oil to produce power, and this year it will use fewer than 1 million barrels.</p><p>Also last week, FPL issued a request for proposals to bring a third major multibillion-dollar, 700-mile natural gas pipeline into Florida. The proposed new "Southeast Pipeline" will provide approximately 400 million cubic feet per day of natural gas capacity for FPL beginning in 2017, and more in the future.</p><p>The proposed pipeline will include the Florida Interstate Connection and Central Florida Hub, which will run from Alabama to Central Florida. The Florida Southeast Connection will run from Central Florida to Martin County, where it will connect with FPL's existing system.</p><p>Interested companies can bid on one or both segments. FPL plans to consider building the Florida Southeast Connection itself. The specific routes will be selected and proposed by companies submitting bids.</p><p>FPL has natural gas-fired plants under construction at Cape Canaveral and Riviera Beach. They are slated for completion in June 2013 and June 2014, respectively. The company also plans to begin operating a new natural gas plant at Port Everglades in Broward County in 2016.</p><p>The company will be purchasing the gas turbines for its Port Everglades plant from German multinational Siemens AG, which is also supplying the turbines for the new Riviera Beach and Cape Canaveral plants, Siemens said.</p>